Regulatory actions and programs

In a classic episode of The Bob Newhart Show, Bob and his wife Emily have mapped out a three-month cruise around the globe when Bob begins to have second thoughts: "I'm not saying we're going," he mutters to his now-seething bride. "But then again, I'm not saying we're not going."

Our most recent column ("To the SEC: Forget the timetable and stop the runaway train," March 15-April 18) reported that the Financial Accounting Standards Board and the International Accounting Standards Board are racing to complete a long list of major projects. We warned that this dash will produce less than the best standards, and promised to describe some specifics, leases in particular.

I would beg to differ with your opening supposition this month ("Firms jogging, not sprinting to IFRS," Feb. 15-March 14, 2010), in which you stated that, "U.S. firms and practitioners have accepted the when, not if, scenario, regarding IFRS convergence."

IMGCAP(1)]Since the Sarbanes-Oxley Act of 2002 and Auditing Standard No. 5 were issued, momentum continues to shift towards continuous monitoring or automation solutions.

The kickoff meeting of the Blue Ribbon Panel on Standard Setting for Private Companies showed there isn’t a lot of agreement among privately held companies and their accountants on exactly what constitutes generally accepted accounting principles.

IMGCAP(1)]While Congress and accountants continue to fight the Sarbanes-Oxley 404 requirements for small filers on what seems like an annual basis, those in the private sector continue to deploy SOX-related policies and procedures as best practices. This trend will continue as the cost of compliance becomes more efficient.

The International Federation of Accountants plans to enhance the international education standards for accountants over the next two years to make financial reporting more reliable.

The Financial Accounting Standards Board and the International Accounting Standards Board plan to reconsider the standards for the types of repurchase transactions that Lehman Brothers used to shift $50 billion temporarily off its balance sheet before issuing its quarterly financial statements.

The Internal Revenue Service has updated its Web site to provide information to small employers regarding the new tax credit for providing health coverage.

The International Ethics Standards Board for Accountants has released a draft plan setting out a proposed strategy for the next three years on ways for accountants to deal with conflicts of interest, suspected fraud and other issues.

Clarity Systems has issued a downloadable guidebook to help companies comply with the SEC’s recent requirements for public companies to begin filing their financial statements in Extensible Business Reporting Language format.

As large businesses continue to shed workers, small businesses are feeling more encouraged to hire, especially with recently passed tax incentives.

The House has approved legislation to provide tax cuts to small businesses and extend the Build America Bonds program to spur job creation.

The Internal Revenue Service has issued proposed regulations requiring paid tax preparers to furnish an identification number on tax returns and claims for tax refunds that they prepare.

The House Financial Services Committee plans to probe the regulatory failures that led up to the collapse of Lehman Brothers after a bankruptcy examiner released a damning report last week on the investment bank’s accounting manipulations.

The House Ways and Means Committee has approved legislation to provide tax relief to small businesses and extend financing measures for creating jobs.

House Ways and Means Committee Chairman Sander Levin, D-Mich., has unveiled a draft of a new bill that would provide tax incentives to small businesses to spur job creation.

PCAOB OFFERS Q&AS ON SPECIAL REPORTING, SUCCESSION

Looking into my crystal ball for 2010, it looks like more companies will be making the most of a difficult regulatory situation. Let's face it, there's no escaping the regulatory reform being driven by the current state of the economy, the increase in governmental legislation, and the continuing ripple effects of the financial crisis that shook the world in 2008 and 2009.

AICPA PARRIES ATTACK ON ACCOUNTING STANDARDS